By: Tomas Ronolski - AllPennyStocks.com News

Wednesday, July 24, 2013

Most think of the area of the sky protecting the earth when hearing the word ozone, but it is also an unstable triatomic form of oxygen, meaning that it is composed of three oxygen atoms. Speaking of the sky, you know that fresh smell after a thunderstorm? That occurs many times because as lightening bolts pass through the atmosphere, an electrical charge is put to the oxygen-containing air, creating O3, or ozone. Recently, the process of ozonation has been developed as a wastewater treatment technology that holds promise across many industries, including municipal waste and energy. In drilling for oil and gas, massive amounts of water are consumed and wastewater is generated, most generally without many economic or environmentally viable solutions for reuse. For example, the pollutive nature of oilsands and fracking has been well publicized when companies don’t follow stringent guidelines and utilize cutting-edge technologies.

Several companies are working on advanced technologies to address these areas of great unmet need, including Seair Inc. (TSX-Venture:SDS), a developer of proprietary technology and equipment that diffuses gases, such as oxygen, ozone and carbon dioxide, into liquids. The company is collaborating with several leading organizations with projects related to the energy industry, through the Northern Alberta Institute of Technology and its Centre for Green Chemistry and Engineering in Edmonton.

Because Seair’s diffusion technology keeps gases in solutions for extended periods of time, it may be superior to other diffusion technologies today due to increased productivity and lower operating costs by creating closed loop systems for complete water reuse.

Unlike many other junior companies traded on the Venture, Seair has a complete line of products on the market, and more in development.

The company said on Wednesday that it has received a purchase order from a major North American municipality for two specially designed SA 75 diffusion towers to be installed in a pilot plant as part of a current wastewater treatment plant. If completed, the new pilot plant will be one of the largest in the world as well as being one of the first to employ ozonation to disinfect wastewater of bacteria, viruses, chemicals and more.

Initially, the pilot plant will only treat about 20 cubic meters of wastewater per day, compared to the 20 cubic meters per second that are treated by the commercial facility currently.

Although this order is small as it is only for the pilot plant, it is significant for the Company because it reflects the confidence that a major city has in their technology. “The municipality reviewed all of the available ozone diffusion technologies for their state-of-the-art treatment plant and chose Seair's,” said Ric Charron, chief executive at Seair in a statement today.

The key takeaway here is importance of this pilot project, not necessarily as a source of revenue today, but for the potential of transitioning into a commercialized ozonation facility employing Seair technology in the future. As the company noted today, cities are passing tougher regulations, mandating municipalities to meet much higher standards for wastewater treatment.

"There are more than 850 Canadian wastewater treatment plants that require upgrades to comply with the new federal regulations and the cost of the required plant upgrades has been forecasted at $6 billion,” according to Seair.

Alone, the municipal wastewater treatment industry offers substantial possibilities, without even factoring in the energy business or other industrial commercial verticals. Several companies are vying to market capture, now it’s up to Seair, which has been around for 25 years, to see if it can grab its share. That’s why this pilot is noteworthy. Shares’ hit a new all-time low in early Wednesday trading at 8.5 cents, but have since recovered to be trading ahead at 10 cents, for gains of 11.1 percent from Tuesday’s close.

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